Easter Egg and Poultry Company has $2,000,000 in assets and $1,400,000 of debt. It reports net income

Question:

Easter Egg and Poultry Company has $2,000,000 in assets and $1,400,000 of debt. It reports net income of $200,000.

a. What is the firm’s return on assets?

b. What is its return on stockholders’ equity?

c. If the firm has an asset turnover ratio of 2.5 times, what is the profit margin (return on sales)?

Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Foundations of Financial Management

ISBN: 978-1259194078

15th edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen

Question Posted: Oct 14, 2014 06:31 AM

See More Questions

Assume the average worker has 100 hours of leisure or work and could earn $10 an hour. Suppose the Social Security disability insurance (DI) program was structured so that otherwise eligible...
Paragraph Part D: Behavior of Gases Using the information provided in the Chapter 11 lecture materials, solve the following problems relating to gas law behavior. 1. A sample of helium gas with a...
A What is the modified equity method? When might a company choose to use the modified equity method rather than the fully adjusted equity method?
A companys retained earnings on December 31, 2018 was $2,190,000 and its shareholders equity was $8,760,000. During 2019 the company reported the following: Net income $225,000 A sale of treasury...
Suppose that f, fk: R R are continuous and nonnegative. Prove that if f(x) 0 as x and fk f everywhere on R, then fk f uniformly on R.
If you were to travel to a star 125 light-years from earth at a speed of 2.50 X 108 m/s, what would you measure this distance to be?
It is the end of the month and David is happy with the good start to his merchandising venture. He has completed a physical stocktake, to make sure stock levels are as expected, and so that a value...
The HR department is trying to fill a vacant position for a job with a small talent pool. Valid applications arrive every week or so, and the applicants all seem to bring different levels of...
1. 2. 3. 4. 5. At critical condition of temperature and pressure for a real gas, what would be the value of 16 Z? Here, Z is its compressibility factor. of species whose In the following list of...
The following financial information was taken from the books of Zone Health Club, a small spa and fitness club: Accounts receivable Accounts payable Salaries payable Cash Dividends Operating expense...
The Haines Corp. shows the following financial data for 2012 and 2013. For each year, compute the following and indicate whether it is increasing or decreasing profitability in 2013 as indicated by...
Network Communications has total assets of $1,500,000 and current assets of $612,000. It turns over its fixed assets three times a year. It has $319,000 of debt. Its return on sales is 8 percent....
1. What factors should companies take into consideration when making the decision between developing their own applications, purchasing them from a vendor, or taking the SaaS route, as discussed...
Discuss the implications of cross-border banking activities and global financial integration for banking regulation and supervision. How do international regulatory bodies, such as the Financial...
Discuss the challenges and opportunities of regulating systemicically important financial institutions (SIFIs) to prevent the potential contagion and spillover effects of their distress or failure on...
Tax Savings. Noel has a 10%marginal tax rate. If he pays $4,410 n interest on a home equity loan in the first year, what will his tax savings be? ( Hint : Assume that all of the interest paid this...
Titan corp. is considering investing 29682 in a new project. The first year after tax cash flow will be 8502 and will grow by 2, 68% per year. The project will last 6 years in total. The project will...
Assume that A is a 33 matrix with the given eigenvalues. Decide to which eigenvalue Power Iteration will converge and determine the convergence rate constant S. (a) {1, 2, 7} (b) {8, 9, 10}.
Make a visit to a commercial building. Examine the HVAC system. Identify chief components of the system. Describe control and energy management strategies used.
Suppose that a business sells 6-month subscriptions to its monthly magazine. On January 1, the company receives a total of $600 for 10 subscriptions. To record this transaction, the company debits...
Which stereotypes do you think others hold about you? Of those, which ones describe you inaccurately? Do any describe you accurately?
What implications are there for the capital markets as the federal government reduces/increases its accumulated debt?
Comment on the use of external versus internal sources of funds by corporations.
Discuss the importance of security markets for both the corporation and the shareholder or bondholder.
What are some scholarly sources that support the implementation of a case manager?
Review your own current processes relating to ER and IR within the organisation and identify three issues that can be improved upon.
A group of students working on a collaborative research project needs a centralized space to store and edit their documents. Which Teams feature should they primarily use?

Easter Egg and Poultry Company has $2,000,000 in assets and $1,400,000 of debt. It reports net income

Question:

Step by Step Answer:

a b c Return on ...View the full answer

Foundations of Financial Management

Students also viewed these Accounting questions